Ex-rep. Zito Paid Self Out Of Campaign Fund

February 04, 1995|By Ray Gibson, Tribune Staff Writer.

Former State Sen. Greg Zito, who is under federal investigation for converting campaign funds to build a home in Wayne, paid himself a salary from his campaign coffers, campaign finance reports released Friday show.

Zito, who left the legislature in 1991, drew a $25,000 salary from his campaign committee last September, although campaign reports don't show what services he performed in return to a basically inactive committee.

The payment to Zito, now a lobbyist for Household Finance Group Ltd. in Prospect Heights, came a day after he paid $33,000 in interest on more than $260,000 that he had borrowed from his campaign fund in 1991 and 1992.

Zito's handling of his campaign money has been under investigation since last summer by the U.S. attorney's office. Zito's campaign records were subpoenaed and federal agents have reviewed his reports.

Neither Zito nor his attorney, Daniel Fusco, could be reached for comment Friday.

Federal and state officials began scrutinizing Zito's handling of his campaign funds after the Tribune reported last May that Zito used $37,500 in campaign funds to pay contractors for work on his home.

A month later, Zito filed amended campaign finance reports that indicated he failed to promptly report his borrowing of the $260,000 from the campaign.

In Illinois, candidates for state and local offices have wide discretion in how they use campaign funds, and they can convert those funds for their personal use.

Those laws also require that if a candidate borrows money from his campaign fund, there must be a written agreement spelling out a repayment schedule and the interest rate must be comparable to those available from commercial lenders.

It is unclear whether Zito has paid federal taxes on the money that was paid to contractors in the construction of his home, but in his current report, Zito declared that he had used $5,540 in campaign funds to pay income taxes to the Internal Revenue Service.

Zito also used his funds to pay his attorney $6,229 in legal fees and to pay an accountant $400.

With the payments, Zito reported that he has only $6,419 remaining in his campaign fund.